Government of Canada closes first complaint received under the Canada–Mexico Facility-Specific Rapid Response Labour Mechanism

July 25, 2023              Gatineau, Quebec              Employment and Social Development Canada

The Government of Canada believes fundamentally in the right to freedom of association and to free and fair collective bargaining. We also believe in trade that reflects these values. Canada brings these beliefs to the table whenever we are negotiating trade agreements, including the Canada–United States–Mexico Agreement (CUSMA).

The binding and comprehensive labour chapter of the CUSMA brings workers’ rights to the forefront of North American free trade. The Agreement includes a rapid response enforcement mechanism between Canada and Mexico, so that we can raise labour standards and protect workers’ rights across our deeply integrated supply chains.

In March 2023, the first complaint under this mechanism was submitted to the Canadian National Administrative Office (NAO). The claim was submitted by Unifor along with the Sindicato Independiente Nacional De Trabajadores Y Trabajadoras De La Industria Automotriz (SINTTIA) against the company Fräenkische Industrial Pipes (FIP) México, at its facility in Silao, Guanajuato. Since then, the NAO has  reviewed the claim, which alleges that workers at the facility were being denied the rights to freedom of association and collective bargaining.

Ultimately, the NAO has confirmed the allegations of the submitters. The NAO has conducted sensitive and challenging discussions with all parties involved. However, given the company’s willingness to address the demands put forward by the submitters, the NAO facilitated a dialogue between the concerned parties to reach an agreement.

This spring, FIP issued a declaration of measures they agreed to take and reaffirmed their commitment to free and fair collective bargaining. The areas of action include:

• compliance with international labour standards and rights;
• ensuring that employees do not face discrimination or retaliation based on their choice of union;
• a zero-tolerance approach to any unlawful restriction on the freedom of association and collective bargaining rights of FIP employees; and
• a commitment that FIP Mexico will remain neutral in all union activities and inter-union disputes.

The company also reinstated the three employees dismissed and named in the complaint with seniority and back pay.

In addition, on July 11, 2023, a federal labour judge confirmed that the union election vote by workers at FIP that took place on June 26, 2023, was conducted in a fair manner and confirmed its result. SINTTIA won the vote and is now the majority representative union for FIP workers.

Given these developments, the Government of Canada considers that the allegations listed in the complaint have been addressed. As a result, the case against FIP has been closed.